2020
DOI: 10.1155/2020/2317246
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Game Theoretic Analysis of After-Sales Service in Two-Echelon Supply Chain with Warranty Sensitive Demand

Abstract: After-sales service contract is widely popular in business. Although both the cases of manufacturer offering warranty and retailer offering warranty are common in market, the differences between them have been few studied. In this paper, we build a two-echelon supply chain in which a manufacturer produces limit quality products and sells them to a retailer. To promote sales, the manufacturer or retailer offers a free-replacement warranty to the customers. Customer’s demand is affected by the warranty length. W… Show more

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Cited by 3 publications
(2 citation statements)
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“…An important finding based on study was that greater loss-aversion on part of the customer might weaken the supplier's bargaining power. Qi et al (2020) in the study related to after-sales contract between a manufacturer and a retailer devised a two-echelon contract wherein the quality aspect was reflected by product quality in presence of production of limited quantity by the manufacturer. An important finding of the study pertained to the fact that warranty length is inversely related to the product quality.…”
Section: Literature Reviewmentioning
confidence: 99%
“…An important finding based on study was that greater loss-aversion on part of the customer might weaken the supplier's bargaining power. Qi et al (2020) in the study related to after-sales contract between a manufacturer and a retailer devised a two-echelon contract wherein the quality aspect was reflected by product quality in presence of production of limited quantity by the manufacturer. An important finding of the study pertained to the fact that warranty length is inversely related to the product quality.…”
Section: Literature Reviewmentioning
confidence: 99%
“…Some customers may search for company products based on their respective (ASS) (Khoo, 2020;Kato, 2021). The reason for (ASS)' support is that it can contribute to increasing brand loyalty and repeat sales (Qi et al, 2020). On the other hand, satis ed customers market the company's products to their friends that, in turn, provides the company with strong advertising for its products and helps to achieve more sales.Depending on their size and the quality of their products, some companies establish a separate department for (ASS).…”
mentioning
confidence: 99%